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Renewable Energy

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INDIA SCENARIO

Creating a Sustainable World

  • Up to 100% FDI is allowed under the automatic route for renewable energy generation and distribution projects subject to provisions of The Electricity Act 2003.
  • For further details, please refer  FDI Policy, Government of India
  • India is the 3rd largest energy consuming country in the world.
  • India stands 4th globally in Renewable Energy Installed Capacity (including Large Hydro), 4th in Wind Power capacity & 5th in Solar Power capacity (as per REN21 Renewables 2024 Global Status Report).The country has set an enhanced target at the COP26 of 500 GW of non-fossil fuel-based energy by 2030. This has been a key pledge under the Panchamrit. This is the world's largest expansion plan in renewable energy.
  • India’s installed non-fossil fuel capacity has increased 396% in the last 8.5 years and stands at more than 201.75 GW (including large Hydro and nuclear), about 45.3% of the country’s total capacity (as of May 2024). India saw the highest year-on-year growth in renewable energy additions of 9.83% in 2022. The installed solar energy capacity has increased by 30 times in the last 9 years and stands at 84.27 GW as of May 2024. India’s solar energy potential is estimated to be 748 GWp as estimated by National Institute of Solar Energy (NISE). The installed Renewable energy capacity (including large hydro) has increased by around 128% since 2014. 

  • 0x
    Increase in Solar Power installed capacity from 2.6 GW to 84.27 GW since 2014
  • 0x+
    Increase in Wind capacity from 21 GW to now at 46.92 GW since 2014
  • 0.26%
    India's share in total installed capacity

UTTAR PRADESH SCENARIO

  • Total Electricity Generation tied up capacity of 40,191 MW by FY 2028, out of which 30,003 MW is operational.
  • Govt. Schemes viz. Development of Solar and Ultra Mega Solar Power Projects, Kusum Yojana, Village Electrification Program.
  • As per Uttar Pradesh Solar Energy Policy 2022, A total of 14 GW of Utility Scale Solar Energy power projects are planned till FY 2028
  • Green Power Tariff : GoUP has decided to introduce Green Energy Tariff at 50% of this additional cost which is Rs. 0.54 per kWh.
  • Net billing / Net feed-in has been introduced in UPERC (Rooftop Solar PV Grid Interactive System Gross/Net Metering)

DOMINANT INDUSTRY FORCES

KEY DEVELOPMENT IN THE INDUSTRY

Transmission Infrastructure

  • Cumulative of 154,878 MVA of transformers operating at different voltage level are established to meet demand.
  • INR 17,965 Cr. of total CAPEX planned under Green Energy Corridor Phase II in UP.
  • Over 50,000 ckt.km of Transmission lines & 624 sub-stations established. 132/33kV sub-stations & Transmission lines are highest amongst established ones.

Solar Projects in state

  • Grid connected Rooftop solar plants installed with a capacity of 265 MW
  • 150 MW of distributed solar contracted by UPPCL under KUSUM C scheme.
  • The GoI has approved solar parks with an aggregate capacity of 3,565 MW in the Bundelkhand region in UP.

POLICIES & SCHEMES

Key Policy Highlights

  • Ayodhya to be developed as a Model Solar city. Further, 16 Municipal Corporations and Noida city to be developed as Solar cities.
  • Government buildings, PSU buildings, schools, Govt. colleges, Technical institutions, etc. shall be covered with Solar Rooftop plants.
  • UP will develop Solar Power Projects for captive consumption and sale of power to third parties other than UPPCL, Interstate and Intrastate.
  • Development of Solar Parks.
  • Solarization of Segregated Agriculture Feeders and Grid connected Private Tube wells.

Special Incentives

  • Stamp Duty @ 100% exemption of stamp duty on the land used for setting up of Solar power plant / solar park
  • Electricity Duty @ 100% exemption of Electricity Duty shall be provided for a maximum period of 10 years
  • State subsidy @ INR 2.5 Cr/MW available to encourage utility scale solar systems with four hours battery storage
  • Energy Banking up to 100% in every financial year up to 25 years
  • Government Land available for lease up to 30 years.
  • Encourage utility scale solar systems with 4 hours battery storage systems with state subsidy @ USD 0.3 Mn/MW available

KEY INVESTMENT OPPORTUNITIES

  • Pump Storage Plants (PSPs)

  • Grid Connected Rooftop Solar Plants/Systems

  • Dedicated solar parks with plug and play infra

  • Solar City

  • Solar projects in solar Parks

  • Solar plants for captive consumption

  • Green hydrogen units

  • Centers of Excellence (CoEs) to conduct research, development, and technological innovation activities in Green Hydrogen/Ammonia

  • Bio energy units including Bio-CBG and bio-CNG units, bio-coal plants, cogeneration projects

  • Bio-gas units

  • Solar Technology Innovation

  • Compressed Biogas Plants, Bio Diesel production plants and Bio Coal production plants utilising Bioenergy waste.


Nivesh Sarathi Nivesh Mitra